"Tips and Strategies on How to Reduce Your Debts":

1. Know your mistake. It is prudent to take an internal look and understand what mistake you made to get in debt. Many times, we extent ourselves to far with such things as cars, furniture, clothes, etc., and forget that we still have to make payments on these items.

Red Flags - Consumers love to use the words "I can afford $200 a month." Buying the payment is far from the truth of what you will be charged over the life of the loan.

You may have signed to pay $200.00 a month, but when you add up a 5 year loan, you would have paid thousands of dollars more than you would have liked to.

Do not talk yourself into a loan because the payment is affordable. Calculate your payment over the life of the loan and then make an intelligent decision

2. Read the "Fine Print". Have you ever taken the time to read the fine print on your credit card bill? You would be angry to find what hidden fees are being charged to you...the fine print will tell the whole story.

You benefit when you make payments as scheduled.

5. Payment Plans. If you have a outstanding bill that has a payment of $25.00 a month. Add an extra $25.00 to your payment. Now your payments is $50.00 a month, instead of $25.00. I used this technique and paid off one of our bills nine months early.

6. Create A Budget. As simple as it sounds, the easiest way to save money is to know exactly how much you need to cover your living and lifestyle expenses versus how much income you can earn. When creating a budget, here are some guidelines to follow.

• Group all your bills in their individual group, such as gas, electric, car, phone, mortgage, etc. Bills like your car note, housing are fixed bill; they never change. Bills like gas, electric, credit card are viable cost, etc., they change from month to month.
• Now, take one of your groups like your gas bill, total the last three months and divide it by six. As an illustration ...Lets say your gas bill in he last three months were $65, $49 & $56 dollars, the total is $170. Now divide $170 by 3 to get the average. Your new budget for your gas bill would be $57. Do this with all your bills that have a variable cost.
• If you use this budgeting technique with every bill, you should have a good picture of what your expenses are every month and then you are able to reduce your debt.
• Automate your financial books. There are many financial software programs to assist you with your organizing your finances . These programs will provide you with tools such as check writing, invoicing, payroll, loan tracking, profit and loss statement, budgeting... the list goes on.

7. Consolidate Your debt. There are many companies out that their that will assist clients with consolidating their debt. Just go to any search engine and type in "consolidate debt". Search through several, call them, and chose the one that you feel comfortable with. Make sure you consolidate all of your credits cards into one low monthly payment.